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register.  Nvidia with the largest daily estimate in Wall Street history

register. Nvidia with the largest daily estimate in Wall Street history

Nvidia posts biggest daily rise in Wall Street history. The American chip company earned $277 billion in Thursday's session, with the stock boosted by record financial profits for 2023.

The company ended the session with gains of more than 16% to more than $785 per share, raising its market capitalization to $1.96 billion.

Traders traded 65 billion shares of Nvidia stock, one-fifth of the S&P 500's total.

The artificial intelligence revolution is causing a global rise in listed companies investing in this field, pushing the Japanese S&P 500, Stoxx 600 and Nikkei indices to record numbers.

The previous record belonged to Meta, which recorded gains of $196 billion on February 2 after announcing its first dividend payment and achieving strong results.

Nvidia's daily valuation alone exceeds that of Coca-Cola ($265 billion).

Nvidia is currently the third-largest company by value in the United States, having already surpassed Amazon and Alphabet in recent weeks.

Microsoft ($3 billion) and Apple ($2.85 billion) are the most valuable companies on Wall Street.

Since the beginning of this year alone, Nvidia shares have risen 58%, accounting for more than a quarter of the S&P 500's rise this year.

The surge in Nvidia's sales is due to artificial intelligence (AI) chips purchased by major North American technology companies, leading the company to expect a more than 200% increase in revenue in the current quarter.

The company saw revenues rise 256% to more than $22 billion, with profits rising 581% to nearly $30 billion in fiscal 2023.

“The people who made the most money during the gold rush of the mid-19th century were those who sold gadgets, not those who searched for the precious metal,” said analyst Russ Mold of AJ Bell, quoted by Reuters. “NVIDIA plays the role himself in this technological revolution.

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Other chipmakers have also benefited from this fever, such as AMD or Broadcom, with the chip index (SOX) rising almost 5% in the biggest daily rise since May 2023.

One of the risks facing Nvidia is the restrictions imposed by the US government on one of its largest markets, China. Washington imposed restrictions on the export of chips to this market: China's weight fell from 22% to 9% within a quarter of the company's sales.

Many investment houses changed their price targets after the results. Rosenblatt Securities raised its price target from $1,100 to $1,400, implying a market cap of $3.5 billion. UBS lowered its price target from $850 to $800 due to “some potential for slower revenue growth.”

Short sellers who bet against the stock lost $2 billion, with losses reaching $6.8 billion this year alone, according to data from S3 Partners.